There are many different purposes, functions and components to HRIS software systems. Technology has been constantly expanding, and with all the new possibilities, companies are able to use these software systems to help their HR departments perform their jobs faster and easier. Large businesses want to make the most amount of money, by spending the least amount possible; with HRIS they are able to realistically achieve this goal. Businesses need to grow and expand or they will not succeed.
The main purpose of an HRIS is so companies can use it internally to keep track of the store’s budget, payroll and employee information more accurately and efficiently. Many large human resource organizations develop or buy these software systems to improve their HR operations while trying to keep the total operating costs low. The more a business can save on wages, the more it can spend on the company internally, to invest in improving the other departments as well. Some companies use HRIS systems to help them communicate worldwide; companies can have one business with several stores around the world that speak different languages. HRIS software systems main function is to help HR personnel handle and process large quantities of information that is tracked and updated automatically; this allows HR staff to focus on personal interaction with employees, instead of dedicating the majority of their time to paperwork.
The key functions of an HRIS software system are to create and maintain employee record, adhere to legal compliance, forecasting for future planning, strategic alignment and enhanced decision making (Dessler, 2011, pg 61). The other functions that an HRIS system can perform include items such as control, effectiveness, flexibility, efficiency, responsiveness, accuracy, ease of use, automation, timeliness and process improvement (HR Systems Strategies Inc, n.d., pg. 1). The companies that are worldwide can use this to communicate the same thing to other countries with the HRIS system. HRIS software systems can have many components to it; however, not all companies require the same components.
The general components that most large HR organizations have include a database to store employee information, time and labour management to track employee attendance, payroll to ensure employees are paid correctly and legally, benefits to ensure employees have appropriate benefits and retirement investments, recruitment to help build the company’s workforce, training for new or promoted employees, organization charting and scheduling for employees shifts and breaks and an employee interface for employees to review personal information (Jennifer, n.d., pg. 1)(Dessler, 2011, pg 58). Some companies can develop their software systems to be capable of performing things such as a salary analysis, budget planning, job design and performance reviews (Cezanne, n.d., pg. 1).
The cost of an HRIS software system can depend on many factors, such as how complex or simple it is and if it was specialized for your company or if it is a general system. Large companies such as fortune 500 can run systems around the tens of millions of dollars, but smaller companies can run systems for less than a thousand dollars (HRIS, HRMS and HR, n.d., pg. 1). The reality is that there are many different HRIS software systems for any price range, but however much you invest into it, is how much you will get out. The HRIS system that a company chooses should not be based on how complex the system is, but how beneficial the system will be to help improve the businesses HR department.
The impact of technology has changed the role of HR in many different aspects. The most obvious positive effect of using technology in an HR department is the increase of accuracy and efficiency, which in turn reduces costs and improves results within the company. The use of technology makes it able for HR to dedicate less time to paperwork and more time to employee interaction (Hall, 2012, pg. 1).
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